Hinge Health (HNGE 2.16%) stock surged 15% through 9:50 a.m. ET Wednesday after beating on Q4 earnings.
Heading into last night's report, analysts forecast the healthcare platform to earn $0.43 per share on $156.8 million in sales. Hinge surprised analysts, however, earning $0.49 per share on sales of $170.7 million.
Image source: Getty Images.
Hinge Health Q4 earnings
Providing wearable devices, clinical access, and AI-powered health advice, treating musculoskeletal conditions is Hinge's business -- and business is good. Sales surged 46% year over year in Q4, and gross margins expanded by 200 basis points.
Hinge's GAAP profit per share declined 7.5%, mostly because of stock dilution resulting from the May 2025 IPO. Net profit grew more than 360% year over year. Free cash flow increased 65% to $61.5 million. (Sidenote: Hinge helpfully deducts its capitalized software costs from cash flow as a capital expense, to arrive at an accurate and conservative FCF number that investors can rely upon).
For the year, Hinge reported sales growth of 51%, 80% gross margins, a GAAP loss, but free cash flow of $179.6 million.
NYSE: HNGE
Key Data Points
Is Hinge stock a buy?
CEO Daniel Perez called the Q4 results "exceptional" and highlighted his company's "expanding margins and strong cash generation." Looking ahead to 2026, the company aims to build on its momentum, forecasting 39% sales growth in Q1 and 25% growth to about $737 million in annual sales.
Management did not give free cash flow or GAAP guidance for the year, but forecast 2026 non-GAAP earnings growth ahead of sales growth -- 29%.
What does this mean for investors? At $2.6 billion in market cap, Hinge trades for only about 14.4x FCF -- but should grow that number close to 30% or better. With these numbers, Hinge stock sure looks like a buy to me.
